San Lucas is a third-party ore sourcing business unit that pays a market fee toll to concentrator plants owned by mine sites and was established in 2017. With signed commercial contracts and established partnerships with concentrator plants to process ore to expand processing capacity and treat off spec ore, San Lucas only incurs cost when there is a profit to be made.
Once Illapa JV contract ends with COMIBOL and if it isn’t extended, San Lucas plans to sign tolling agreements with new mine operators at Porco and Bolivar sites to treat third party ore.
Potential market of more than 1MM tons per year with quality / head grades according to geographic location. The market is highly competitive market (165 competitors Potosi + 75 competitors Oruro) but San Lucas is consistently growing and operating at 100% of capacity.
There is opportunity to increase head grades seize new markets and to further improve and create other opportunities.
Since its operations, San Lucas has generated an average of US$4MM in cash flow.
